What is the overhead cost per unit

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Reference no: EM1311171

Calculation of overhead cost per unit, total overhead allocated to each product using traditional costing system and ABC costing system.

Hutchings Company manufactures and distributes two products, A and K. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has changing to an activity-based costing ABC. system. She has collected the following information:

Activity	Cost Driver	Amount	A	K
Production setups	Number of setups	$164,000	16	24
Material Handling	Number of parts	96,000	112	48
Packaging costs	Number of units	260,000	160,000	100,000
		$520,000

A. What is the overhead cost per unit under the current system?
B. What is the total overhead allocated to each product using the current system?
C. What would be the total overhead allocated to each product under ABC costing?
D. What would be the overhead cost per unit under ABC costing?

Reference no: EM1311171

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